Roadmap to Implementing Michigan's New Energy Policy: Paths to the Future Report
Michigan, like many other states, faces the concurrent forces of emerging technologies, changing economics of fuel sources, new environmental regulations, aging infrastructure, and regional wholesale electric market influences. To address these challenges and ensure successful implementation of the state’s energy policy, the Michigan Energy Office (MEO) launched a stakeholder- and research-driven roadmap for implementing new energy policies that align utility business interests and customer behavior with public policy objectives. The initiative aims to enhance coordination, stimulate more thoughtful planning, and develop new regulatory and rate design models. The MEO and its convening partner, PSC Inc., enlisted the Regulatory Assistance Project to prepare this overview of alternative regulatory structures and rate design methodologies to better align utility behavior with public policy objectives. The report covers five topics, including codes of conduct for the future, performance-based ratemaking, rate design, decoupling, and infrastructure planning analysis and review. While this report was prepared for Michigan specifically, the issues discussed are applicable to other jurisdictions facing similar dynamic changes in their energy sectors.